Description
This document highlights the Highlights of the Union Budget India 2012 2013
Highlights of the Union Budget Finance minister Pranab Mukherjee presented India's budget on Friday for the year 2012-2013 POLICY REFORMS * Allow external commercial borrowing of up to $1 bln to raise working capital for airlines industry for 1 year * To allow qualified foreign investors in Indian corporate debt markets * To allow external commercial borrowing to part finance rupee debt in power projects * Proposes to remove sector-specific restriction on venture capital fund investments * Hope to achieve "broad-based consensus" to open multi-brand retail sector to foreign investors INFRASTRUCTURE SPENDING * To award contracts to build 8,800 km of roads in 2012/13 * Govt to provide 600 billion rupees in tax free bonds for financing infrastructure projects in 2012/13 FINANCE MINISTER ON GOVERNANCE * We have to accelerate the pace of reform, says Pranab GROWTH AND INFLATION EXPECTATIONS * Expect headline inflation to moderate in next few months and remain stable thereafter * Economy expected to grow at 7.6 percent in 2012/13, plus or minus 0.25 percent * Economy expected to grow at 6.9 percent in 2011/12 * Signs of economy turning around in March quarter AGRICULTURE * Expects country to become self-sufficient in urea production in five years * Proposes to raise agricultural credit target in 2012/13 to 5.75 trillion rupees DISINVESTMENT * Disinvestment target in 2012-13 of 300 billion rupees * Expects country to become self-sufficient in urea production in five years * Proposes to raise agricultural credit target in 2012/13 to 5.75 trillion rupees SUBSIDIES * To keep 2012/13 subsidies under 2 percent of GDP * Major subsidies bill estimated at 1.8 trillion rupees in 2012-13 * Food subsidy bill in 2012-13 seen at 750 billion rupees * Fertilizer subsidy bill in 2012-13 seen at 609.7 billion rupees * Petroleum subsidy bill in 2012-13 seen at 435.8 billion rupees * Revised petroleum subsidy bill for 2011-12 at 684.8 billion rupees * To inject 159 billion rupees to capitalize state-run banks in 2012/13 CURRENT ACCOUNT * Current account deficit seen at 3.6 per cent of GDP in 2011-12 SECTOR SPENDING * Allocates 1.94 trillion rupees for defence in 2012/13, up from 1.64 trillion rupees in previous year FISCAL DEFICIT * Fiscal deficit seen at 5 . 9 percent of GDP in 2011-12 * Fiscal deficit seen at 5 . 1 percent of GDP in 2012-13 SPENDING * Total expenditure in 2012 / 13 seen at 14 . 9 trillion rupees * Plan expenditure budgeted at 521.25 billion rupees in 2012/13, up 18 percent REVENUE AND TAXES * Gross tax receipts seen at 10.8 trillion rupees in 2012-13 * Non-tax revenue seen at 1.64 trillion rupees in 2012-13 * Proposes to levy tax on all services except 17 items in the negative list from 2012/13 * Proposes to raise service tax rate to 12 percent from 10 percent * No change in corporate tax rates * To enhance tax exemption limit to 200,000 rupees for individuals income in 2012/13 * Proposes to provide full exemption on import duty of thermal coal for power plants * Proposes to double basic customs duty on gold BORROWING * Net market borrowing seen at 4.8 trillion rupees in 2012-13 FINANCE MINISTER COMMENTS "We have to accelerate the pace of reforms and improve supply side management of the economy." "Economic policy, as medical treatment, often requires us to do something which in the short run may be painful but is good for us in the long run." "As Hamlet, the Prince of Denmark, said in Shakespeare's immortal words, 'I must be cruel only to be kind'."
doc_953002502.docx
This document highlights the Highlights of the Union Budget India 2012 2013
Highlights of the Union Budget Finance minister Pranab Mukherjee presented India's budget on Friday for the year 2012-2013 POLICY REFORMS * Allow external commercial borrowing of up to $1 bln to raise working capital for airlines industry for 1 year * To allow qualified foreign investors in Indian corporate debt markets * To allow external commercial borrowing to part finance rupee debt in power projects * Proposes to remove sector-specific restriction on venture capital fund investments * Hope to achieve "broad-based consensus" to open multi-brand retail sector to foreign investors INFRASTRUCTURE SPENDING * To award contracts to build 8,800 km of roads in 2012/13 * Govt to provide 600 billion rupees in tax free bonds for financing infrastructure projects in 2012/13 FINANCE MINISTER ON GOVERNANCE * We have to accelerate the pace of reform, says Pranab GROWTH AND INFLATION EXPECTATIONS * Expect headline inflation to moderate in next few months and remain stable thereafter * Economy expected to grow at 7.6 percent in 2012/13, plus or minus 0.25 percent * Economy expected to grow at 6.9 percent in 2011/12 * Signs of economy turning around in March quarter AGRICULTURE * Expects country to become self-sufficient in urea production in five years * Proposes to raise agricultural credit target in 2012/13 to 5.75 trillion rupees DISINVESTMENT * Disinvestment target in 2012-13 of 300 billion rupees * Expects country to become self-sufficient in urea production in five years * Proposes to raise agricultural credit target in 2012/13 to 5.75 trillion rupees SUBSIDIES * To keep 2012/13 subsidies under 2 percent of GDP * Major subsidies bill estimated at 1.8 trillion rupees in 2012-13 * Food subsidy bill in 2012-13 seen at 750 billion rupees * Fertilizer subsidy bill in 2012-13 seen at 609.7 billion rupees * Petroleum subsidy bill in 2012-13 seen at 435.8 billion rupees * Revised petroleum subsidy bill for 2011-12 at 684.8 billion rupees * To inject 159 billion rupees to capitalize state-run banks in 2012/13 CURRENT ACCOUNT * Current account deficit seen at 3.6 per cent of GDP in 2011-12 SECTOR SPENDING * Allocates 1.94 trillion rupees for defence in 2012/13, up from 1.64 trillion rupees in previous year FISCAL DEFICIT * Fiscal deficit seen at 5 . 9 percent of GDP in 2011-12 * Fiscal deficit seen at 5 . 1 percent of GDP in 2012-13 SPENDING * Total expenditure in 2012 / 13 seen at 14 . 9 trillion rupees * Plan expenditure budgeted at 521.25 billion rupees in 2012/13, up 18 percent REVENUE AND TAXES * Gross tax receipts seen at 10.8 trillion rupees in 2012-13 * Non-tax revenue seen at 1.64 trillion rupees in 2012-13 * Proposes to levy tax on all services except 17 items in the negative list from 2012/13 * Proposes to raise service tax rate to 12 percent from 10 percent * No change in corporate tax rates * To enhance tax exemption limit to 200,000 rupees for individuals income in 2012/13 * Proposes to provide full exemption on import duty of thermal coal for power plants * Proposes to double basic customs duty on gold BORROWING * Net market borrowing seen at 4.8 trillion rupees in 2012-13 FINANCE MINISTER COMMENTS "We have to accelerate the pace of reforms and improve supply side management of the economy." "Economic policy, as medical treatment, often requires us to do something which in the short run may be painful but is good for us in the long run." "As Hamlet, the Prince of Denmark, said in Shakespeare's immortal words, 'I must be cruel only to be kind'."
doc_953002502.docx